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Phased retirement: An ageless perk?

The new federal phased retirement program (PRP) isn't just for feds
who take vitamins or for seniors as they wait in line for the early bird (dinner
at 4:30 p.m.) special.

Allowing feds to dip their toes in retirement, before completely
taking the plunge, has the potential to open up the promotion ladder for younger
and mid-career employees, to offset potential harm from a retirement-tsunami brain drain and make moving into the next
phase of your life much easier. But first this note:

Did you ever wonder why when the private sector does things, it just
does them? Whereas, in the federal government, it seems that just about anything,
no matter how simple it appears, becomes a federal case?

Reason: The mostly career federal civil service is managed by a
handful of elected and appointed political appointees, and its board of directors
is made up of 535 members of Congress. Many are patriots. Some are self-seeking,
self-promoting types whose goal, after getting elected, is to keep getting
reelected.

As a result many things are done (or attempted) in the name of making
government work better. Because of thousands of laws, and what must be millions
of sometimes conflicting regulations, when Congress does something simple —
with the civil service — it takes time to cross all the proverbial i's and
dot those pesky t's.

Take the phased retirement program, please!

It was approved a long time ago but the final regulations have only just
been approved. Because of merit system rules and laws, allowing somebody to work
part-time, while also being retired part-time, is easier said than done.
Yesterday's Your Turn radio show was devoted to
an update — by an expert — in the new program. Our Guest, Bob
Braunstein, brought his own expertise to the program and answered more than a
dozen key questions from listeners. Check it out, and alert a friend too.
Regardless of your age, and time left in government, this could be important to
you.

Meantime, here are some high-points on the program:

Not an entitlement program — it is voluntary between agency and
employee

Must be full-time federal employee for preceding three years

Must be eligible for immediate retirement (not age reduced)

Must not be subject to mandatory age retirement

FEHB and FEGLI enrollments stay with agency

FEGLI amounts based on full-time salary

FEHB agency contribution does not change

Can return to full-time service but not back to phased retirement

Must pay deposits and redeposits before phased retirement

Survivors can make deposits and redeposits owed if phased retiree's death
occurs in service

Unused sick leave added only at full retirement

Calculated as if retiring from a full-time position

No survivor benefits elected until full retirement

Survivor benefits in phased retirement are same as death in service benefits

Phased retirement period treated as part-time service for annuity computation

FERS Basic Employee Death Benefit based on full-time salary

Composite annuity computed at full retirement, which includes the phased
retirement annuity plus one-half of the annuity otherwise payable had employee
been full-time during the phased period.

People are more creative when they're unconsciously "primed" with thoughts of
death, according to new research. Students who were unconsciously exposed to
words, such as "pain" and "death" flashing for milliseconds on a computer screen,
and then asked to write captions for New Yorker cartoons, were rated to
have written more humorous captions.

IRS cancels manager bonuses; union
employees could be next
The Internal Revenue Service is canceling bonuses for its managers this year and
is working to cancel bonuses for union workers, the agency announced Tuesday.
Acting IRS head Danny Werfel told workers in an email that he is canceling the
bonuses because of automatic spending cuts enacted this year.

House committee proposes slashing IRS budget
by 24 percent
The embattled Internal Revenue Service faces a 24 percent cut to its budget next
year, under a spending plan introduced by the House Appropriations Committee
Tuesday. The bill includes $9 billion in funding for the IRS, which is about $4
billion less than President Barack Obama proposed in his 2014 budget request.